Apple Stock Drops 7% as Cook Warns of Memory Shortage
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- Apple stock fell 7% to $308.91 on Friday, pulling back from near-record highs after outperforming Magnificent Seven peers by roughly 13% year to date
- iPhone revenue jumped 22% year-over-year to a June quarter record as part of Apple's $109.4 billion in total Q3 revenue (up 16% YoY)
- Greater China revenue missed analyst expectations at $18.8 billion versus the $19.5 billion estimate
- Apple's Services segment underwhelmed at $30.7 billion versus roughly $31.3 billion expected, while Q4 revenue guidance of 9%–11% growth fell short of the ~12.1% consensus estimate
- Tim Cook said memory costs have risen in each of the past three quarters and will rise again in September, warning that market pricing suggests further increases beyond that quarter
- Apple has raised prices on Macs and iPads in response and is widely expected to boost next-generation iPhone prices at its September annual showcase
Why it matters: Apple beat on top-line iPhone growth but missed its two key expansion bets — Greater China and Services — while Cook's memory-cost warning ties Apple's margins directly to the AI infrastructure boom that has lifted rivals. The 7% drop erases a meaningful slice of Apple's 13% YTD gain, and the planned September iPhone price hike will test whether consumers absorb the AI-driven cost squeeze or push back.
